Investment Risk Tolerance Quiz

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MachineGhost
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Investment Risk Tolerance Quiz

Post by MachineGhost » Tue Sep 20, 2016 9:53 pm

Backed by science! Risk tolerance is a stable personality trait. However, risk perception changes because it is a cognitive appraisal based on one's current mental state.

http://njaes.rutgers.edu:8080/money/riskquiz/
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Re: Investment Risk Tolerance Quiz

Post by boglerdude » Tue Sep 20, 2016 10:46 pm

24 - average/moderate tolerance for risk.

Expected lower. . .I found this forum after all.

They say people are irrationally risk averse but it also depends on how much you can afford to lose.
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Re: Investment Risk Tolerance Quiz

Post by MachineGhost » Tue Sep 20, 2016 10:53 pm

Me too.

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"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

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l82start
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Re: Investment Risk Tolerance Quiz

Post by l82start » Wed Sep 21, 2016 12:37 am

ditto
but with a 28 instead of 24.. i am a wild man ;)

(Your Score: 28 You have an average/moderate tolerance for risk)
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Re: Investment Risk Tolerance Quiz

Post by dragoncar » Wed Sep 21, 2016 2:10 am

Above average, but possibly a $200 gain is insignificant compared to my portfolio. If they example values were 10-100 times bigger I'd be far more cautious
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Re: Investment Risk Tolerance Quiz

Post by MachineGhost » Wed Sep 21, 2016 10:33 am

dragoncar wrote:Above average, but possibly a $200 gain is insignificant compared to my portfolio. If they example values were 10-100 times bigger I'd be far more cautious
Yeah, I noticed that too. The marginal wealth impact of some of the questions is a waste of time for us peeps but you're "supposed" to choose the correct answer anyway according to the rules of behaviorial finance (i.e. go for the highest expected value of the propositions instead of the sure gain... well, the highest expected value is a waste of time for me, so I rather have the sure gain than risk getting nothing at all or less.)

And I thought the lack of "valuation" was conspisciously absent also. That plays the largest role in determing future long-term returns than behavioral finance questions. But that may be too much for the average Boobus Americanus.
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Re: Investment Risk Tolerance Quiz

Post by clacy » Wed Sep 21, 2016 11:10 am

33 here. I guess that's why I'm comfortable with a leveraged PP.
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Re: Investment Risk Tolerance Quiz

Post by dualstow » Wed Sep 21, 2016 11:23 am

twenty
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Re: Investment Risk Tolerance Quiz

Post by buddtholomew » Wed Sep 21, 2016 1:42 pm

shit...17.
Basically anything but Fort Knox is insufficient.
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Re: Investment Risk Tolerance Quiz

Post by Cortopassi » Wed Sep 21, 2016 1:56 pm

29...on paper.

Reality is much lower...

Which is why I like the PP.
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Re: Investment Risk Tolerance Quiz

Post by iwealth » Wed Sep 21, 2016 3:28 pm

27, and I also have no idea how I'd have answered some of those questions under different financial circumstances.

17, Budd, sheesh ;)
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Re: Investment Risk Tolerance Quiz

Post by buddtholomew » Wed Sep 21, 2016 3:44 pm

It's a phobia, difficult to overcome.
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Re: Investment Risk Tolerance Quiz

Post by MachineGhost » Wed Sep 21, 2016 9:49 pm

buddtholomew wrote:It's a phobia, difficult to overcome.
In reality, I wouldn't have the investments they recommend at 24 either. I'm very phobic.
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Re: Investment Risk Tolerance Quiz

Post by dragoncar » Wed Sep 21, 2016 9:59 pm

I didn't even know what they were getting at with the whole "some experts think metals will go up do you sell your bonds?" Uh no I don't change my AA based on what "some experts" think
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Re: Investment Risk Tolerance Quiz

Post by LazyInvestor » Wed Sep 21, 2016 11:47 pm

30 with standard PP
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Re: Investment Risk Tolerance Quiz

Post by Kriegsspiel » Thu Sep 22, 2016 8:13 am

dragoncar wrote:I didn't even know what they were getting at with the whole "some experts think metals will go up do you sell your bonds?" Uh no I don't change my AA based on what "some experts" think
Yea I picked the "I don't care what they say" option. I also picked "no money" for the geologist neighbor because how would he know there's a 20% chance of striking gold? It does make sense, in a way, that trusting other people like that depends on how "risky" you are, since they can lose your money, but I didn't think that's the kind of risk I'd be getting assessed on. The whole survey could have been "experts think long term government bonds are going to do better than 60-40 in the next 2 years, do you put all your money in those bonds, or hold what ya got?" Instead of asking YOU what YOU'D do in current market conditions. I guess when you are the experts, you would feel like what they said matters.
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Re: Investment Risk Tolerance Quiz

Post by MachineGhost » Thu Sep 22, 2016 10:38 am

Kriegsspiel wrote:Yea I picked the "I don't care what they say" option. I also picked "no money" for the geologist neighbor because how would he know there's a 20% chance of striking gold? It does make sense, in a way, that trusting other people like that depends on how "risky" you are, since they can lose your money, but I didn't think that's the kind of risk I'd be getting assessed on. The whole survey could have been "experts think long term government bonds are going to do better than 60-40 in the next 2 years, do you put all your money in those bonds, or hold what ya got?" Instead of asking YOU what YOU'D do in current market conditions. I guess when you are the experts, you would feel like what they said matters.
Blah, blah, blah... but what was your score? Can you top lazyinvestor's 30?
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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Re: Investment Risk Tolerance Quiz

Post by Kriegsspiel » Thu Sep 22, 2016 12:49 pm

32. But I think it's a poorly constructed survey.
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Re: Investment Risk Tolerance Quiz

Post by dragoncar » Thu Sep 22, 2016 1:01 pm

The classics questions are the ones with equal expected value, so would you rather have $500 or a 50/50 chance at $0/$1000. That makes sense I guess. I'd typically pick a sure thing all else being equal.

Now if it's $500 vs 50/50 chance of $2000/0 I'd flip the coin. Usually you keep adjusting the values until you find the point at which you prefer the coin flip.

But if it's $5 million vs 50/50 chance of $20 million/0, I'd go back to the sure thing because it's more money than I need
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Re: Investment Risk Tolerance Quiz

Post by bitcoininthevp » Thu Sep 22, 2016 2:31 pm

29 here. guess that explains the bitcoin in the vp.
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Re: Investment Risk Tolerance Quiz

Post by bedraggled » Thu Sep 22, 2016 3:02 pm

27
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Re: Investment Risk Tolerance Quiz

Post by dragoncar » Fri Sep 23, 2016 4:23 pm

I got a perfect score (100) and think the test was very well written
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Re: Investment Risk Tolerance Quiz

Post by dualstow » Fri Sep 23, 2016 4:32 pm

buddtholomew wrote:It's a phobia, difficult to overcome.
It's one of the better phobias, though, and better than being a gambler/spendthrift.
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Re: Investment Risk Tolerance Quiz

Post by vnatale » Sat Nov 16, 2019 10:04 pm

MachineGhost wrote:
Tue Sep 20, 2016 9:53 pm
Backed by science! Risk tolerance is a stable personality trait. However, risk perception changes because it is a cognitive appraisal based on one's current mental state.

http://njaes.rutgers.edu:8080/money/riskquiz/
That link led to nowhere. Doing a Bing internet search on the words Rutgers risk quiz ended up bringing me here: http://pfp.missouri.edu/research_IRTA.html

Took it and got a 28, on the high end of "You have an average / moderate tolerance for risk" and just below "You have an above-average tolerance for risk".

Vinny
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Re: Investment Risk Tolerance Quiz

Post by dualstow » Sun Nov 17, 2019 9:05 am

vnatale wrote:
Sat Nov 16, 2019 10:04 pm
MachineGhost wrote:
Tue Sep 20, 2016 9:53 pm
Backed by science! Risk tolerance is a stable personality trait. However, risk perception changes because it is a cognitive appraisal based on one's current mental state.

http://njaes.rutgers.edu:8080/money/riskquiz/
That link led to nowhere.
...
That’s because the thread is three.years.old. In Internet forum thread years, it is George Burns. It’s the Old Man of the Mountain. It was quite dead, or was before you exhumed it. What the hell, Vinny?

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For the rest of us, I’m not sure how we’re supposed to tell which of these topics are truly active, and which ones are Vinny telling us he got a “28” on an exam that nobody remembers. ???
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